5 Factors That Stop The Dream Of An Entrepreneur From Becoming A Reality

There comes a time in the life of all of us, when we are fed up of all the monotonous routine of going to work and performing the same job over and over, which neither offers any hope for a better future nor keeps us interested. This is the time when most of us think of being our own bosses, starting a business of our own, and being in the category of the zealous entrepreneurs.

 

Every one of us is aware of the success stories of renowned entrepreneurs. However, very few of us are aware of the fact that beneath the cream of a few successful entrepreneurs, there is a debris of unsuccessful entrepreneurs, who took the leap without taking proper precautions, hence weren’t able to land on the ladder of success.

 

Being an entrepreneur is not just having a unique idea or dream, rather there is a lot that stands between an entrepreneur and his/her dream. The lines below give the five major factors that stand between an entrepreneur and the dream.

 

5 Factors That Stop The Dream Of An Entrepreneur From Becoming A RealityLack Of Research

 

The biggest mistake that most of the employees make when they transit to becoming an entrepreneur is going in to the market without proper research. Having a great idea is not sufficient enough for the dream to become reality, rather an entrepreneur needs to have an understanding of the market, and prepare an according business plan to ensure that the idea transforms into reality and the dream comes true. Therefore, not doing proper research is the primary factor that hinders between the success and an entrepreneur.

 

Insufficient Capital

 

The other obvious reason why the dream of an entrepreneur does not transform into reality is the insufficient capital. The most successful entrepreneurs will tell you that most of the unsuccessful entrepreneurs have very limited capital which only suffices the short term needs of the business. What these entrepreneurs forget is that the business has to go on in a long run, therefore, it is all a matter of time that their insufficient capital runs out and they have nothing left do then to pack up everything. Therefore, in order to be successful in an entrepreneurial venture, you need to have sufficient capital to sustain the needs of the business in the long run.

 

Lack of Understanding Of Business

 

There is no end to imagination and an idea of any type can strike anywhere to anyone, however, it’s the conversion of this idea into reality that matters, and for that a budding entrepreneur needs to have an understanding of business and its processes. Thus, the lack of knowledge of business processes is another reason behind the failure of entrepreneurs. Being the owner of the business, an entrepreneur needs to have an understanding of the running costs, the assets, liabilities, marketing, inventory and so on to be able to better manage the business and make it survive in the long run, hence an entrepreneur must acquire business knowledge for better management.

 

5 Factors That Stop The Dream Of An Entrepreneur From Becoming A RealityWrong Marketing Strategy

 

It is evident that to make a name the business has to devise a marketing strategy. Selection of wrong marketing strategy is another reason that causes the demise of entrepreneurs. The marketing plan for a food outlet cannot work for a mobile app development service idea, therefore, it is imperative that an entrepreneur realizes the importance of marketing strategy and select an appropriate strategy that effectively propagates the idea and helps in developing a brand.

 

Incompetent Team

 

The chain is as strong as its weakest link, this saying holds true to all the entrepreneurs who rely only on their abilities and give little importance to the people in their team. A business venture with such an approach is deemed to fail. All the entrepreneurial ventures comprise of small teams, therefore, the successful mentors will emphasize on the fact that each and every member of the team must be selected with utmost caution. If an entrepreneur has a wrong team working under him/her, the venture won’t last long and the entrepreneur will have to decide between keeping the employee or keeping the dream alive. Therefore, right employees should be hired at the first place.

 

Now it’s Your Turn!

 

I have shared what I have observed and read about the unsuccessful entrepreneurs. Do you know any? According to you what was the reason of failure of the particular entrepreneur? I wait to hear your thoughts on the topic and feel free to share your experience in the comments section!

 

To your Success,


Nate Leung


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Nate Leung

Nate Leung

CEO & Founder @ NateLeung.com at NateLeung.com
Nate Leung is the CEO and Founder of NateLeung.com, and author of "Virtual Entrepreneur: Live Free With the Business of Your Dreams". Nate specializes in helping people take their passion, knowledge, and expertise and bring it to life. You can find out more from Nate by connecting with him over at Google +. If you're struggling and or looking for help, contact Nate here.
Nate Leung
Nate Leung

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35 Responses to “5 Factors That Stop The Dream Of An Entrepreneur From Becoming A Reality”

  1. Barbara Charles

    Hi Nate,

    You are dead on. I’d just like to add one other that ties into incompetent team. One thing I noticed is that most people have no clue about business. They are not entrepreneurs at heart and they get into business without knowing what really is involved.

    So adding ‘People don’t know about business or how to treat their business like a business.’ Most people treat it like a hobby and that does not work.

    Anyway, good points I hope that give people pause to think about what they need to do to change if they want success.

    Great post,
    Barbara

    [Reply]

  2. Bill Garner

    In Luke, Jesus talked about the cost of being a disciple.

    “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, saying, ‘This person began to build and wasn’t able to finish.’ “Or suppose a king is about to go to war against another king. Won’t he first sit down and consider whether he is able with ten thousand men to oppose the one coming against him with twenty thousand? If he is not able, he will send a delegation while the other is still a long way off and will ask for terms of peace.”

    Whenever you pursue anything, you have to count the cost! Our society has become saturated with microwave thinking. Instant gratification has become the norm.

    If you are striving to become an entrepreneur, you have to establish 3 to 5 year plan to become financially free. While 5 years sounds like a long time, it beats the heck out of 40 years.

    To your success!

    Bill G.

    [Reply]

  3. Ryan Biddulph

    Hi Nate,

    Great reasons! Lack of research killed me for years. I did dumb stuff because I did NOT treat this like going back to school. I needed to research, study and work for a long time to see success.

    Thanks for sharing!

    Ryan

    [Reply]

  4. James

    When I was growing up and was partly managing my dad’s business. one factor that resulted in the collapse of the business was not fund, but insufficient research and lack of proper understanding of the business itself.

    I have come to discover over long period of time that any business you want to venture in, it is important you make proper research and have adequate knowledge of it.

    Thanks Nate for sharing this important entrepreneur tips.

    [Reply]

  5. Linda Kapani

    WOW! Amazing to know and learn this great stuff!

    [Reply]

  6. Jeanne Melanson

    These are all good and valid points, Nate. Being an entrepreneur is very difficult, and so many people fall into the trap of the hype that often goes along with the business venture they’re looking at. People looking for prospects make it look easier than it actually is. Thanks for sharing!

    [Reply]

    Nate Leung Reply:

    You’re welcome Jeanne! Thank you for the comments!

    [Reply]

  7. Mike

    I wish I had this when I first started. Great advice!

    [Reply]

    Nate Leung Reply:

    Well, the good news is that you know now. It’s always better to start later than never! 🙂

    [Reply]

  8. Sherman Smith

    Hey Nate,

    This is something that new entrepreneurs need to understand when they first start a business or thinking about starting one. My failure was not a lot of research and incompetent team members. This was definitely a big lessen learned and very important how vital it is to the survival of your business. Thanks Nate! You were point on with this!

    [Reply]

    Nate Leung Reply:

    Thank you for the kind words Sherman!

    [Reply]

  9. Randy McLean

    I find a major hurdle is unrealistic expectations. Some believe they can start something quick and become a success overnight.

    When this doesn’t happen, discouragement sets it. I guess this could really fall under lack of business understanding.

    The main thing is to be patient!

    [Reply]

    Nate Leung Reply:

    Patience is the key! The journey to success is a process and everyone has to go through it. Thank you for the comments!

    [Reply]

  10. Gena Livings

    Hi Nate,
    All are valid reasons for an entrepreneur not realizing their dreams. Having a strong plan, vision and goal along with all the things you mentioned are what set the foundation for success.
    Healthy blessings,
    Gena

    [Reply]

    Nate Leung Reply:

    Thank you Gena!

    [Reply]

  11. Greg Mock

    When I read all of those reasons I see someone who is not serious about being in business and they probably aren’t successful at having a job either. I don’t mean this is a bad way…. I was that person but as my personal life improved so did my business prospects.

    [Reply]

    Nate Leung Reply:

    How people do anything in life is how they do everything. If they show up not being ‘serious’, then that shows up in all areas of their life. Thanks Greg!

    [Reply]

  12. Karl E Bennett Jr

    Nate, I would like to add the another tip to your list. I seen business fail because they refused to change and grow. Business is a moving target, and if you are not keeping up you will be left behind. Nate, I would say having the ability to change the status quo, the way you do things yesterday, may not be as effective today.

    [Reply]

    Nate Leung Reply:

    Awesome addition to the list Karl! Thank you!

    [Reply]

  13. Rachel Lavern

    This is a great post Nate. We are like-minded today, as I also wrote on entrepreneurial traits. There are so many things that can contribute to someone failing an entrepreneurship but what comes to my first is persistence. I love Napoleon Hill’s quote “The majority of people are ready to throw their aims and purposes overboard, and give up at the first sign of opposition and misfortune. A few carry on DESPITE all opposition, until they attain their goal. These few are the Fords, Carnagies, Rockefellers, and Edisons”.

    [Reply]

    Nate Leung Reply:

    I love Napoleon Hill as well. Awesome book. I’m glad to see that it has served you well. 🙂

    [Reply]

  14. Susan Evans

    I agree with your above statements, and I would add that you have to be willing to work your tail off for at least 2 or 3 years with no income to start up a successful business. Whatever you make at the beginning goes straight back into the business to upgrade. This way you become better and better at what you do. Also, you have to become known, and this does not happen overnight. People who expect to make money on a home business immediately are almost always disappointed.

    [Reply]

    Nate Leung Reply:

    Exactly, Susan. It all starts with the proper foundation and mindset.

    [Reply]

  15. Judy Garey

    I think many people are unsuccessful because they don’t believe in themselves or understand the process of manifesting what they want.

    [Reply]

    Nate Leung Reply:

    Once they start believing in themselves, they have eliminated half the battle. Thanks Judy!

    [Reply]

  16. Jason Power

    Hi Nate,

    Good information. I notice a lot of the tips you provide here have something in common and it has to do with having a plan for success and setting yourself up for success before you get in over your head. Thanks for the advice!

    [Reply]

    Nate Leung Reply:

    You’re welcome Jason! Thanks for stopping by!

    [Reply]

  17. Jon Patrick

    Strong post today with solid tips. Being aware of the challenges allows you to plan or scheme around them!

    [Reply]

    Nate Leung Reply:

    Exactly, thanks Jon!

    [Reply]

  18. Daniel Williams

    I know of one unsuccessful entrepreneur. He lacked capital but was able to yield a VC for himself. He didn’t trust him ultimately. Eventually the relationship between the two went sour after being unable to see any kind of ROI. These things do happen. Like you said if you hire people on your team they have to be the right person.

    [Reply]

    Nate Leung Reply:

    Thanks Daniel!

    [Reply]